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A Scandinavian Consensus Solution for Efficient Income Distribution Among Nonmalevolent Consumers

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Author Info
Ted Bergstrom (University of California, Santa Barbara)

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Abstract

If Persons A and B are both benevolent to C, then a gift from A to C also benefits B. Thus C's income is like a public good to A and B. What happens with lots of people whose affections are entangled? This paper shows that a "distributional Lindahl equilibrium" exists and leads to an efficient income redistribution.

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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number 1970A.

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Date of creation: 01 Dec 1970
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Handle: RePEc:cdl:ucsbec:1970a

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Related research
Keywords: benevolence Lindahl equilibrium gifts nonmalevolence income redistribution Pareto optimality

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  1. Theodore C. Bergstrom, 2006. "Benefit-Cost in a Benevolent Society," American Economic Review, American Economic Association, vol. 96(1), pages 339-351, March. [Downloadable!] (restricted)
    Other versions:
  2. Peter J. Hammond & Antonio Villar, . "Efficiency with Non-Convexities: Extending the "Scandinavian Consensus" Approaches," Working Papers 97036, Stanford University, Department of Economics. [Downloadable!]
    Other versions:
  3. Antonio Villar Notario & Peter Hammond, 1998. "- Valuation Equlibrium Revisited," Working Papers. Serie AD 1998-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
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This page was last updated on 2008-9-30.

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